FIPB to take up HDFC Bank plan to hike overseas stake

The Foreign Investment Promotion Board (FIPB) will consider a proposal by HDFC Bank to increase the overseas shareholding limit on February 3.

The bank, sources said, has sought permission "to maintain the permissible foreign holding in the bank up to 67.55 per cent of the total paid up capital, out of which the FII sub-limit would be 49 per cent and the balance 18.55 per cent would be FDI."

Last month, the FIPB deferred a decision on the proposal for want of more details.

The Reserve Bank of India (RBI) recently said foreign shareholding in HDFC Bank had crossed the overall limit of 49 per cent of its paid-up capital and that no further purchases of the bank's shares would be allowed through Indian stock exchanges on behalf of overseas investors, including NRIs, persons of Indian origin and holders of depository receipts.

Foreign shareholding in the bank as of December 13 was 52.18 per cent.

"Since the total foreign shareholding in the bank (FII and FDI) has crossed 49 per cent, the bank has filed an application with the FIPB seeking approval for increasing its foreign shareholding limit," HDFC Bank had said in a BSE filing.